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P-Dub
10/20/2008 9:14pm,
From mmaweekly.com:


ProElite, Inc., parent company of Elite Xtreme Combat, is throwing in the towel on mixed martial arts.

Several sources MMAWeekly.com spoke to said notifications had been sent out on Monday informing managers that the company was ceasing its fight promotion operations by the end of this week and it had begun the process of letting its employees go. One source even said that ProElite had already begun clearing out its corporate offices.

EliteXC’s remaining show scheduled for Nov. 8 in Reno, Nevada has been canceled. The card was due to be broadcast on Showtime networks, EliteXC’s original broadcast partner since the company’s formation in November of 2006.

Industry sources on Saturday informed MMAWeekly.com that ProElite made a last ditch effort to salvage its assets by selling off portions of the company, including fighter contracts and the satellite promotions it acquired in 2007.

The company had accrued over $55 million in debt in its twenty-four months of operations. Though its third CBS-televised offering, Oct. 4’s “Heat,” was looked at as a ratings success by EliteXC and CBS executives, the company's financial position had become untenable in recent months.

In an August SEC filing, EliteXC disclosed they were seeking 3.5 million dollars to fund operations through the end of the year. Only a month later, another SEC filing said they had received only $1 million in funding, provided by Showtime networks.

Elite CEO Chuck Champion last month told MMAWeekly.com that the Showtime loan came after two principal investors in the company had elected not to provide the $3.5 million "bridge financing."

An SEC filling dated Oct. 9 revealed that CBS had funded "Heat" due to ProElite's inability to pay for the show.

Multiple calls to EliteXC and Showtime representatives on Monday went unreturned, although EliteXC Vice President Jared Shaw told MMAWeekly.com on Saturday he had no comment on the matter.

Although EliteXC now is out of the picture, that doesn't necessarily mean that CBS and Showtime are out of the MMA business. Sources have indicated that, having worked with Affliction Entertainment to add Andrei Arlovski and Roy Nelson to the "Heat" event (both are Affliction fighters), there is now the distinct possibility that CBS may look towards a relationship with Affliction to fill the void left by EliteXC's exodus.

Gina Carano is safe from Christiane Cyborg for another day. The question is who's going to pick up women's MMA? Strikeforce? WEC?

Nick Diaz vs Eddie Alvarez is off too. At least Arlovski's got a place to go fight.

I wonder how this bodes for Kimbo Slice's career. Maybe now he'll fight his way up on small shows instead of headlining shows on major network television.

Sakamonster
10/20/2008 9:44pm,
Diss. Where's that FBI investigation now

Beezer
10/20/2008 9:51pm,
Oh, man, what league will Fancypants Lyle fight in now?

3moose1
10/20/2008 9:53pm,
Moar Seth Petruzelli...

:p

tharuz
10/20/2008 9:54pm,
At last! Cung Le will either start making shitty b-movies or be eaten for breakfast by the likes of GSP, BJ Penn, and Anderson Silva.

ironcastknight
10/20/2008 10:14pm,
Excuse and feel free to correct any ignorance I show in my understanding of the economics and running of a combat show, but how, exactly, did ProElite burn through fifty five fucking MILLION dollars in just two years of running events where people punched each other in the face? I know it costs a lot for the logistics of the thing, moving people and props and **** all over, renting venues, advertising, and so forth, but goddamn, fifty five million dollars?

Either someone there can't bargain for **** and ended up paying low billing fighters way, way too much, or there's some serious embezzlement going down there which warrants keeping that FBI investigation going.

Though one show dies, the joy others feel in seeing random guys beat the **** out of each other for fame and money shall never fade, and thus shall the beatdowns continue. Boxing, MMA, sumo wrestling, arm wrestling, thumb wrestling, and Christ, even just wrestling, will always bring in the big bucks, and amuse the hell out of us in the process. Rock on, tiny dancers, rock on.

hoodedmonk
10/20/2008 10:25pm,
please ufc pick up Gina,Cyborg,Noons and Cung.

P-Dub
10/20/2008 10:27pm,
Yeah, I guess Mauro Ranallo's out of work too. And the brothers Shamrock.



At last! Cung Le will either start making shitty b-movies or be eaten for breakfast by the likes of GSP, BJ Penn, and Anderson Silva.
Cung Le fights for Strikeforce, pretty sure they're still around. I think they only cross-promoted with Elite XC occasionally, but they weren't owned by ProElite, and if memory serves me correctly they are one of the only non-UFC American MMA organizations actually making money at the moment.

edit:Well Frank fights for Strikeforce too... I mean out of work as a commentator.

3moose1
10/20/2008 10:29pm,
Yeah, I guess Mauro Ranallo's out of work too. And the brothers Shamrock.

I hate Ranallo.

Kentucky Fried Chokin
10/20/2008 10:35pm,
At last! Cung Le will either start making shitty b-movies or be eaten for breakfast by the likes of GSP, BJ Penn, and Anderson Silva.

But you told me they were only marginally better than Cung Le?

Kentucky Fried Chokin
10/20/2008 10:36pm,
please ufc pick up Gina,Cyborg,Noons and Cung.

Dana no leikz teh wimmenz fytz!

tharuz
10/20/2008 10:39pm,
But you told me they were only marginally better than Cung Le?

*Brain Explodes :BangHead:

3moose1
10/20/2008 10:39pm,
Dana no leikz teh wimmenz!


...yeah, we know.

tharuz
10/20/2008 10:40pm,
Dana no leikz teh wimmenz fytz!

Isn't Dana a woman's name?

Kentucky Fried Chokin
10/20/2008 10:45pm,
Isn't Dana a woman's name?

In the same way that GSP and Anderson Silva are only marignally better than Cung Le.

hoodedmonk
10/20/2008 10:47pm,
I hate Ranallo.I second!